At a Glance | July 11, 2019 Changes in Retirement Income Adequacy Under Opposite Extremes for Ages 35–39 We explore universal defined contribution (DC) coverage, and the other extreme, in which defined contribution retirement plans are completely eliminated. RETIREMENT READINESS Average Retirement Savings Shortfalls by Gender and Marital Status Single females have the largest Retirement Savings Shortfalls Average Retirement Deficit (RSS). $69.5k Single Female RSS are determined as a present Widowed Female $22.7k value of retirement deficits at age 65 in 2019 dollars. $36.3k Single Male $19.4k Widowed Male GENDER AND MARITAL Average Decrease or Increase in Retirement Income Adequacy STATUS EFFECT by Gender and Marital Status Under the “Universal DC Plan” 1 scenario, the improvement Deficit Decrease Under Deficit Increase Under the “Universal DC Plan” Scenario “Elimination of DC Plans” Scenario (decrease) in average deficits - $13.3k + $12.1k is largest for single females and Single Female single males. - $9.2k + $12.7k Widowed Female Whereas under the “Elimination - $11.7k + $11.8k Single Male of DC Plans” scenario, single - $9.1k + $10.9k Widowed Male and widowed females are most impacted. INCOME EFFECT Average Increase or Decrease in Retirement Income Adequacy by Income Quartile Under the “Universal DC Plan” 1 scenario, the improvement Deficit Decrease Under Deficit Increase Under the (decrease) in average deficits Preretirement “Universal DC Plan” Scenario Income Quartile “Elimination of DC Plans” Scenario exceeds $10,000 for all but - $1.7k + $1.6k the lowest income quartile. Lowest Quartile - $19.9k + $15.3k Second Quartile Under the “Elimination of DC Plans” scenario, the - $17.1k + $17.1k Third Quartile increase in average deficits - $10.5k + $11.5k is largest for the second Highest Quartile and third income quartiles. SOURCES: EBRI Retirement Security Projection Model® versions 3459, 3507, and 3512. Jack VanDerhei. “Alternative Realities: The Impact of Extreme Changes in Defined Contribution Plans on Retirement Income Adequacy in America,” EBRI Issue Brief, no. 484 (Employee Benefit Research Institute, June 13, 2019). 1. The “Universal DC Plan” scenario is one where every employer (with the exception of those that already sponsor a defined benefit plan) is assumed to sponsor a defined contribution plan. © 2019 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.